1. Recordkeeping and Record Retention ------------------------------------------------------------------- KATHLEEN L. MIZEJEWSKI, CPP, GBA March 20, 2010 E-Mail: kathmiz@msn.com kathmiz@msn.com Phone: 708-363-5986

2. Rule of thumb….. 3 is 4 4 is 3 OSHA is 5

3. Federal Wage-Hour Law 10-2 FLSA requires certain records to be kept by covered employers for all employees and retained for either 2 or 3 years FLSA requires certain records to be kept by covered employers for all employees and retained for either 2 or 3 years Refer to lists on p. 10-2 and 10-3 Refer to lists on p. 10-2 and 10-3

4. Federal Wage-Hour Law 10-4 Records must be “Safe and Accessible” and be available for inspection within 72 hours Records must be “Safe and Accessible” and be available for inspection within 72 hours Penalties – Up to $10,000 and 6 months imprisonment Penalties – Up to $10,000 and 6 months imprisonment In Lawsuit – Court will accept employee’s evidence if employer has incomplete records In Lawsuit – Court will accept employee’s evidence if employer has incomplete records

5. Internal Revenue Code 10-5 IRC requires all employers that must withhold and pay FIT, SS, and MED retain these records for 4 years IRC requires all employers that must withhold and pay FIT, SS, and MED retain these records for 4 years Includes W-4, W-5, W-4S, W4-P, personal employee info, W-2, EIN, and copies of all tax returns (941, 940, etc.) Includes W-4, W-5, W-4S, W4-P, personal employee info, W-2, EIN, and copies of all tax returns (941, 940, etc.)

6. Internal Revenue Code 10-7 Employer remains ultimately responsible for the recordkeeping requirements, even if using a payroll service provider In event of audit, employer must make all records available upon request Penalties - Up to $25,000 ($100,000 for corporations) and 1 year imprisonment

7. Federal Anti-Discrimination Law 10-9 Civil Rights Act of 1964 (Title VII) requires records to be kept at least 1 year (EEOC) Civil Rights Act of 1964 (Title VII) requires records to be kept at least 1 year (EEOC) Age Discrimination in Employment Act of 1967 (ADEA) requires records to be kept at least 3 years Age Discrimination in Employment Act of 1967 (ADEA) requires records to be kept at least 3 years Government Contractor Regulations – Federal contractors and subcontractors must retain info on applicants and employees to determine if affirmative action goals have been met Government Contractor Regulations – Federal contractors and subcontractors must retain info on applicants and employees to determine if affirmative action goals have been met

8. Federal Anti-Discrimination Laws 10-10 Immigration Reform and Control Act (IRCA) requires I-9 to be retained for at least 3 years after date of hire or 1 year after date of termination, whichever is later Immigration Reform and Control Act (IRCA) requires I-9 to be retained for at least 3 years after date of hire or 1 year after date of termination, whichever is later Family Medical Leave Act (FMLA) requires records to be retained for either 2 or 3 years – same as FLSA requirements Family Medical Leave Act (FMLA) requires records to be retained for either 2 or 3 years – same as FLSA requirements

9. State Laws State Unemployment Insurance Laws - 10-12 State Table on 10-13 State Unemployment Insurance Laws - 10-12 State Table on 10-13 State Wage-Hour Laws – 10-14 - State Table on 10-14 and 10-15 State Wage-Hour Laws – 10-14 - State Table on 10-14 and 10-15 Unclaimed Wages (Escheatment) – 10-15 – Table on 10-15 and 10-16 Unclaimed Wages (Escheatment) – 10-15 – Table on 10-15 and 10-16

10. Record Retention Procedures 10-16 More companies are storing all employee data in one master file or database More companies are storing all employee data in one master file or database Docs Needed from New Employees Docs Needed from New Employees Form W-4, Withholding Allowance Certificate Form W-4, Withholding Allowance Certificate State W/H Allowance Certificate State W/H Allowance Certificate Local W/H Allowance Certificate Local W/H Allowance Certificate Form I-9, Employment Eligibility Verification Form I-9, Employment Eligibility Verification

11. Record Retention and Storage Methods 10-18 Many businesses retain records for much longer than required minimum, often as long as company is in business Many businesses retain records for much longer than required minimum, often as long as company is in business Storage Methods Storage Methods Paper Paper Micromedia Storage (microfiche, microfilm) Micromedia Storage (microfiche, microfilm) Media Imaging (optical character recognition – OCR) Media Imaging (optical character recognition – OCR) Electronic Vaulting (offsite mirroring or shadowing) Electronic Vaulting (offsite mirroring or shadowing)

12. Record Retention and Storage Methods 10-19 Retrieval and destruction of records Retrieval and destruction of records Companies must have a Policy governing record retention, retrieval and destruction Companies must have a Policy governing record retention, retrieval and destruction Written Policy should clearly state retention periods, methods of retrieval, and methods of disposal and destruction Written Policy should clearly state retention periods, methods of retrieval, and methods of disposal and destruction Consistently applied policy of retention and disposal can be good protection in the event of a lawsuit Consistently applied policy of retention and disposal can be good protection in the event of a lawsuit

13. Health Insurance Portability and Accountability Act – HIPAA 10-20 HIPAA of 1996 HIPAA of 1996 Designed to help employees and their families maintain health insurance coverage when the employees change or lose jobs Designed to help employees and their families maintain health insurance coverage when the employees change or lose jobs Provisions include requirements for the electronic exchange, privacy, and security of health information Provisions include requirements for the electronic exchange, privacy, and security of health information Privacy Rule – April 14, 2003 - regulations governing individually identifiable health information applies to health plans, health care clearinghouses, and any health care provider who transmits health information in electronic form Privacy Rule – April 14, 2003 - regulations governing individually identifiable health information applies to health plans, health care clearinghouses, and any health care provider who transmits health information in electronic form

14. Good Luck and Be the Wizard of Your Exam !! Kathleen L. Mizejewski, CPP, GBA March 20, 2010 E-Mail: kkkk aaaa tttt hhhh mmmm iiii zzzz @@@@ mmmm ssss nnnn.... cccc oooo mmmmPhone: 708-363-5986